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Segment Information Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Selected Income Statement Information by Segment
Selected Statement of Income Information                                 
 
 
Earnings
 
Depreciation and Amortization(a)
 
 
Year Ended December 31,
 
Year Ended December 31,
(MILLIONS OF DOLLARS)
 
2019

 
2018

 
2017

 
2019

 
2018

 
2017

U.S.
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
3,203

 
$
2,877

 
$
2,620

 
 
 
 
 
 
Cost of Sales
 
655

 
606

 
565

 
 
 
 
 
 
Gross Profit
 
2,548

 
2,271

 
2,055

 
 
 
 
 
 
    Gross Margin
 
79.6
%
 
78.9
%
 
78.4
%
 
 
 
 
 
 
Operating Expenses
 
543

 
456

 
421

 
 
 
 
 
 
Other (income)/deductions
 
—

 
—

 
(3
)
 
 
 
 
 
 
U.S. Earnings
 
2,005

 
1,815

 
1,637

 
$
44

 
$
34

 
$
29

 
 
 
 
 
 
 
 
 
 
 
 
 
International
 
 
 
 
 
 
 
 
 
 
 
 
Revenue(b)
 
2,972

 
2,890

 
2,643

 
 
 
 
 
 
Cost of Sales
 
925

 
929

 
889

 
 
 
 
 
 
Gross Profit
 
2,047

 
1,961

 
1,754

 
 
 
 
 
 
    Gross Margin
 
68.9
%
 
67.9
%
 
66.4
%
 
 
 
 
 
 
Operating Expenses
 
560

 
559

 
515

 
 
 
 
 
 
Other (income)/deductions
 
—

 
3

 
(1
)
 
 
 
 
 
 
International Earnings
 
1,487

 
1,399

 
1,240

 
53

 
48

 
44

 
 
 
 
 
 
 
 
 
 
 
 
 
Total operating segments
 
3,492

 
3,214

 
2,877

 
97

 
82

 
73

 
 
 
 
 
 
 
 
 
 
 
 
 
Other business activities
 
(348
)
 
(337
)
 
(313
)
 
24

 
23

 
23

Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
(707
)
 
(666
)
 
(625
)
 
69

 
59

 
52

Purchase accounting adjustments
 
(234
)
 
(162
)
 
(88
)
 
219

 
143

 
88

Acquisition-related costs
 
(43
)
 
(63
)
 
(10
)
 
—

 
—

 
—

Certain significant items(c)
 
(67
)
 
43

 
(25
)
 
—

 
—

 
—

Other unallocated
 
(292
)
 
(339
)
 
(291
)
 
3

 
1

 
6

Total Earnings(d)
 
$
1,801

 
$
1,690

 
$
1,525

 
$
412

 
$
308

 
$
242


(a) 
Certain production facilities are shared. Depreciation and amortization is allocated to the reportable operating segments based on estimates of where the benefits of the related assets are realized.
(b) 
Revenue denominated in euros was $742 million in 2019, $745 million in 2018, and $660 million in 2017.
(c) 
For 2019, certain significant items primarily includes: (i) a change in estimate related to inventory costing of $69 million, (ii) CEO transition-related costs of $10 million, (iii) consulting fees, product transfer costs, employee termination costs and exit costs related to cost-reduction and productivity initiatives of $7 million, and (iv) income of $20 million resulting from a payment received pursuant to an agreement related to the 2016 sale of certain U.S. manufacturing sites.
For 2018, certain significant items primarily includes: (i) a net gain of $42 million related to the divestiture of certain agribusiness products within our International segment, (ii) a net gain of $18 million related to the relocation of a manufacturing site in China, (iii) charges related to our operational efficiency initiative and supply network strategy initiative of $9 million; and (iv) employee termination costs in Europe of $7 million.
For 2017, certain significant items primarily includes: (i) charges related to our operational efficiency initiative and supply network strategy initiative of $20 million; (ii) Zoetis stand-up costs of $3 million; (iii) employee termination costs in Europe of $4 million, (iv) income related to a commercial settlement in Mexico recorded in 2014 and 2016 of $5 million; and (iv) charges of $3 million associated with changes to our operating model.     
(d) 
Defined as income before provision for taxes on income.
Long-lived Assets by Geographic Areas
Property, plant and equipment, less accumulated depreciation, by geographic region follow:
 
 
As of December 31,
(MILLIONS OF DOLLARS)
 
2019

 
2018

U.S.
 
$
1,342

 
$
1,188

International
 
598

 
470

Property, plant and equipment, less accumulated depreciation
 
$
1,940

 
$
1,658